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Optimizing ISP’s Customer Premise Equipment Investment with Forward and Reverse Logistics
February 10, 2022
Customer premise equipment (CPE) that is leased to end users represents a significant investment for Internet Service Providers (ISP’s). KGPCo’s refurbished equipment program gives ISPs an opportunity to save costs and reduce e-waste.
KGPCo opened a facility in Olathe, Kansas in 2019, equipped with automation designed specifically for high volume forward and reverse logistics operations. It is here that we process and refurbish more than 1.5 million customer premise devices each year.
The refurbishment process starts when we receive the ISP’s equipment directly from the end user customers who have disconnected their internet service, or from retail stores that accept returns, and from installation and repair centers that collect equipment from service visits. KGPCo’s secure facility receives four to five thousand returned devices every day.
The equipment goes directly to an unpacking area where devices, power supplies, and cables are separated, inspected for damage, and packaging is collected for recycling.
The cables and power supplies are then sent to Integrated Employment Enterprises (IEE), a local organization that provides employment for developmentally disabled adults. It’s there that the cables are wrapped and re-packaged. Once the power supplies are returned from IEE, they are tested for proper operation before being placed into inventory for kitting.
The returned devices are scanned to shut off the service that is connected to the device. Using our Warehouse Management System and Reverse Logistics Web Portal we capture RMA information, serial number and MAC address of devices.
Based on demand, devices are then moved to an inspection and testing station where they are first inspected for cosmetic damage. If the device can be cleaned and presented as like-new, it moves to the testing phase. If it does not meet approved visual specifications set by the ISP, it is placed in recycling.
Devices that are deemed obsolete are also collected for recycling and transported to an e-waste recycling facility for proper disposal. These processes help to reduce the impact of unused electronics on the environment.
Devices are then put through a testing process. Software clears all previous customer information, checks for proper functioning of the ports, power, and logical operations as well as updates to the newest firmware. All devices must pass precise inspection and testing before being placed in refurbished inventory. For devices that are repairable, we partner with an experienced equipment repair service provider for all gateway restoration, performed on-site to reduce cycle time of the refurbishment process.
KGPCo operates a best-in-class warehouse management system that tracks inventory from the moment it is received until it is shipped back out. Our robust cycle counting program is driven by both directed and sweep cycle counts on a daily and weekly basis. Reporting is provided to the customer weekly and monthly.
The refurbished devices are then kitted to fulfill customer orders. A tested device and power supply, along with inspected or new cables are assembled into a kit made ready for shipping. Each kit is labeled and loaded onto pallets for stocking in the distribution center to await future shipment to customers.
Refurbished devices are shipped direct to customers’ homes in branded packaging for easy self-installation by the customer. An automated conveyor system captures critical sales order information, runs a quality check, and captures serial numbers and MAC addresses for each customer order.
KGPCo is proud to partner with Internet Service Providers to optimize their customer-premise equipment investment. In addition to value for the customer, this program creates employment opportunities throughout the United States and prevents unusable equipment from becoming e-waste.
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